Advancement Bids for Advertisement Selection Accuracy
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Solution Overview
Problem
The existing cost-per-click (CCP) and pay-per-click (PPC) advertisement programs face challenges in selecting appropriate ads due to unavailable or inaccurate click-through-rates (CTR), leading to improper advertisement selection and limited display opportunities, which can delay the estimation of a satisfactory CTR and impact advertiser performance.
Innovation Solution
The use of advancement bids, such as impression bids and experimentation bids, allows advertisers to promote the recognition of satisfactory click rates, enabling timely participation in advertisement-selection auctions and competing effectively even with unsatisfactory click rates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If click-through-rate and CCP bid are used to select advertisements for display, then advertisement selection accuracy is improved, but advertisements with unavailable or inaccurate click-through-rates are excluded from display opportunities
Solution Approach 1:
The patent introduces an experimentation bid as an intermediary mechanism that allows advertisements without satisfactory click-through-rates to participate in display auctions. This intermediary bid type acts as a bridge, enabling new advertisements to gain display opportunities while maintaining the auction-based selection system's integrity. The experimentation bid compensates for the missing click-through-rate data, allowing the advertisement to compete fairly without requiring historical performance data.
Solution Approach 2:
The patent changes the selection parameter from requiring a satisfactory click-through-rate to accepting either a satisfactory click-through-rate or an experimentation bid. This parameter change allows the system to accommodate advertisements at different stages of their lifecycle, enabling new advertisements to participate using the experimentation bid parameter while established advertisements continue to use click-through-rate-based selection.
2Reliability
If display opportunities are limited until satisfactory click-through-rate is obtained, then advertisement selection quality is improved, but time to achieve accurate click-through-rate estimation is extended
Solution Approach 1:
The patent applies preliminary action by allowing advertisements to participate in display auctions before achieving satisfactory click-through-rates through the experimentation bid mechanism. This preliminary participation enables advertisements to accumulate the necessary display data and impressions needed for accurate click-through-rate estimation, rather than waiting passively until a threshold is met. The experimentation bid facilitates early entry into the display ecosystem.
Solution Approach 2:
The patent implements a feedback mechanism where advertisements participating with experimentation bids continue to receive display opportunities, generate actual click-through-rate data, and gradually transition from experimentation bid-based selection to click-through-rate-based selection as their performance data accumulates. This continuous feedback loop allows the system to learn and adjust, improving selection quality over time while maintaining productivity.
3Measurement precision
If advertisements with minimal display frequency are shown, then click-through-rate estimation accuracy is improved, but advertisement selection competitiveness is reduced
Solution Approach 1:
The experimentation bid serves as a counterweight that balances the competitive disadvantage faced by advertisements with limited display frequency. By introducing this alternative bid type, the system compensates for the lack of historical performance data, allowing new advertisements to compete on more equal footing with established advertisements that have robust click-through-rate metrics. The experimentation bid effectively weights the competition to account for differences in data availability.
Data Source
AI summary
Systems, methods, and computer storage media having computer-executable instructions embodied thereon that facilitate advertisement selection using advancement bids. In embodiments, advertisement attributes in association with an advertisement are referenced. Such advertisement attributes might include an impression bid and a click bid. For a particular advertisement, it is determined if a satisfactory click rate is available. If it is determined that the satisfactory click rate is unavailable for the advertisement, an impression bid is utilized to compete with other advertisements in an advertisement-selection auction. On the other hand, if it is determined that the satisfactory click rate is available for the advertisement, the satisfactory click rate and the click bid are utilized (e.g., via an effective impression value) to compete with the other advertisements in the advertisement-selection auction.